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Viking Therapeutics: Undervalued Amidst Industry Upswing
ByAinvest
Monday, Sep 29, 2025 12:15 am ET1min read
Viking Therapeutics, a weight-loss drug company, has seen its stock price decline to yearly lows despite being ahead of a potential competitor that was recently acquired for a premium. The company has several potential products in development, including its lead candidate, VK5211, which has shown promise in clinical trials. Despite the setback, Viking Therapeutics remains a promising player in the weight-loss market.
Viking Therapeutics, Inc. (NASDAQ: VKTX) has seen its stock price decline to yearly lows, despite the company being ahead of a potential competitor recently acquired by Pfizer for a significant premium. The weight-loss drug company is positioned to benefit from a growing market and has several promising products in development, including its lead candidate, VK5211.Viking Therapeutics has been facing challenges with its oral weight-loss drug, VK2735, which showed a 12.2% mean weight loss in a Phase 2 trial but had a 28% discontinuation rate due to gastrointestinal side effects. This setback triggered a 40% plunge in the company's stock price [2]. However, the company's injectable VK2735 is advancing into Phase 3 trials with 5,600 patients enrolled in the VANQUISH program [2].
The market for weight-loss drugs is highly competitive, with established players like Eli Lilly and Novo Nordisk. Viking Therapeutics' lead candidate, VK5211, has shown promise in clinical trials and could provide a significant advantage in the market. The company has a robust pipeline, including VK2809 for MASH (metabolic and skeletal muscle) and a dual amylin/calcitonin receptor agonist, which could attract potential acquisition targets [2].
Viking Therapeutics is well capitalized, with $808 million in cash reserves as of June 2025, providing the company with financial flexibility to endure near-term setbacks [2]. The company's strategic realignment focuses on regulatory clarity, partnership opportunities, and pipeline diversification, positioning it to navigate the evolving competitive landscape.
Despite the recent challenges, Viking Therapeutics remains a promising player in the weight-loss market. The company's lead candidate, VK5211, has shown potential in clinical trials, and its robust pipeline could attract potential acquisition targets. Investors should closely monitor the company's progress in Phase 3 trials and its strategic realignment efforts.
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